Question 42
MediumOriginal questionA firm sells at a market price of ₹20 a unit. Its total cost schedule is:
| Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Total cost (₹) | 20 | 35 | 45 | 57 | 77 | 103 | 135 |
What is the firm's profit if it produces 6 units?
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
TR = 20 × 6 = ₹120; TC = ₹135.
Profit = 120 − 135 = ₹−15: going past the equilibrium turns profit into a loss.
- Concept
- Profit beyond equilibrium
- Typical timeTypical
- 70 s
- Your timeYours
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